Overnight Snapshot

The Day Ahead

0745hrs UK         EU ECB Board Member Sabine Lautenschlager speaks in Sofia
0900hrs UK         CH Swiss National Bank Board Member Jean Studer and Board President Thomas Jordan speak during the Bank AGM in Bern
0900hrs UK         EU The ECB’s Yves Mersch speaks in Sofia
0930hrs UK         UK UK GDP released (est 0.3%qoq / 1.35%yoy vs previous 0.4%/1.4%)
1000hrs UK         EU EuroZone Economic Sentiment (est 111.96 vs previous 112.6
1000hrs UK         EU EuroZone Business Climate Indicator (est 1.26 vs previous 1.34)
1000hrs UK         EU EuroZone Consumer Sentiment Survey (est -0.08 vs previous 0.4)
1330hrs UK         US Employment Cost Index (est 0.69%qoq / 2.6%yoy vs previous 0.6%/2.6%)
1330hrs UK         US GDP Annualized (est 1.99%qoq vs previous 2.9%)
1330hrs UK         US Core PCE (est 2.52%qoq vs previous 1.9%)
1500hrs UK         UK Bank of England Governor Mark Carney speaks in London
1500hrs UK         US University of Michigan Sentiment Index (est 98.13 vs previous 97.8)
1515hrs UK         UK Bank of England MPC member Andy Haldane speaks in London
1640hrs UK         EU German Chancellor Angela Merkel meets with President Trump in the White House

EU Informal EcoFin / EuroGroup meeting over the weekend in Sofia

US earnings releases today include Chevron, Colgate-Palmolive, and Exxon Mobil

The Day So Far….

STOCKS: US stocks advanced yesterday with each of the major indices posting gains of approx. 1% or more by the close, boosted by solid earnings, a rebound in tech names, and US bond yields easing back. The tech benchmark Nasdaq enmded a five day losing streak whist the S&P tech sector posted its first gain in six sessions. Facebook surged over 9% higher after posting impressive earnings and subscriber numbers which eased the recent nerves on their use of subscriber data. The Dow added 238.51 points to 24322.34, the S&P500 pushed on 27.54 points to 2666.94, and the Nasdaq100 forged an impressive 2% gain to close up 135.713 at 6649.654

Most of the major Asia-Pacific equity indices have followed their Wall St. counterparts higher. This came as the leaders of South & North Korea met and struck a generally upbeat tone re: relations going forwards. However early gains were eroded through much of the morning session, but the general trend was to climb steadily through the afternoon. The e-mini S&P futures have tempered gains and have lost 5 points, whilst the Dow futures have slipped back around 40 points.

US TSYS: The US Tsy curve has undergone a modest degree of flattening in Asia-Pacific dealing, extending on Thursday's moves, as the US 10-Year yield edges away from the heavily commented on 3.00% after the 3.05% pivot level held firm.  The shorter end of the curve is softer to unchanged, while longer dated paper trades just off of highs in price terms.  Trade has been fairly limited with the JPY sitting marginally better off helping Tsys higher.  The Eurodollar strip has followed Tsys, with the white and red contracts (1-2 years maturity) 0.5-1.0 tick higher.

OIL: The major oil metrics shed around $0.30, with WTI last trading at $67.95 & Brent trading around $74.45.  This came as the leaders of South & North Korea met and struck a generally upbeat tone re: relations going forwards.  Traders also continue to monitor the Iranian nuclear deal situation.

GOLD: The yellow metal stuck to a tight range, last trading unchanged around $1317/oz after the leaders of the two Koreas struck a relatively warm tone re: future relations at a meeting in the DMZ, while US Tsy yields edged lower.

FOREX: The USD edged lower against the majors in Asia-Pacific dealing. - JPY is a little firmer. The BoJ stood pat on Monetary Policy as expected, USDJPY last trades at 109.31, largely unchanged..  NZDUSD discounted the surprise NZ trade deficit & fall in consumer confidence.  NZDUSD last trades at 0.7050, after the Bollinger base provided support around session lows. Similar moves were seen in the AUDUSD which last trades at 0.7545, with focus now on next week's RBA decision. - After a brief foray below 1.2100 EURUSD last trades at 1.2110. The 2 sources pieces released since the ECB Monetary Policy decision haven't been able to override the cautious tone of Draghi's press conference. GBPUSD has followed the broader USD story, last at 1.392

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Отдел аналитики